Culinarian Cookware: Pondering Price Promotion
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Culinarian Cookware: Pondering Price Promotion -- Case Study
Executive SummaryCulinarian shapes its brand image by using excellent quality items and superior aesthetics. In 2006, Audrey Roux, the CEO of Culinarian Cookware company, presented programs which focus on four strategic priorities to increase earnings. Culinarian is a manufacturing cookware company, which designs, manufactures, distributes, and marks premium performance products with advanced metallurgy technology. They already own the building blocks of success: clear strategic direction, more product choices, advanced technology, strong brand name image, good management philosophy, motivated employees, and strong financial conditions. It is time for them to have a success. Refer to 2004 price promotion, the company wanted to promote the new price promotion in 2007 to positively profitability impact. According to the research, using the price promotions with discount and gift methods is the best strategy to focus on distinct product lines.
Right now, Culinarian Cookware faces two diverse views about the 2007 price promotion. Those views depend on different calculation methods from consultants and another proposed by Brown. Those different methods caused different results when evaluating the profitability of the 2004 price promotion. By identifying and comparing the methods and results of these two calculations, the 2004 price promotion was not as good as they imagined. This article talks about another calculation method used to explain why the 2004 price promotion is not a good choice. The price promotion can bring development, but the short term gains cannot obscure the fact of the long-term losses. The 2004 price promotion failed. By learning from 2004 mistakes, Culinarian could develop more concrete steps, which can suit their own conditions, and then they can make their own way.
Introduction
From 2002 to
Culinarian Cookware: Pondering Price Promotion -- Case Study
Executive SummaryCulinarian shapes its brand image by using excellent quality items and superior aesthetics. In 2006, Audrey Roux, the CEO of Culinarian Cookware company, presented programs which focus on four strategic priorities to increase earnings. Culinarian is a manufacturing cookware company, which designs, manufactures, distributes, and marks premium performance products with advanced metallurgy technology. They already own the building blocks of success: clear strategic direction, more product choices, advanced technology, strong brand name image, good management philosophy, motivated employees, and strong financial conditions. It is time for them to have a success. Refer to 2004 price promotion, the company wanted to promote the new price promotion in 2007 to positively profitability impact. According to the research, using the price promotions with discount and gift methods is the best strategy to focus on distinct product lines.
Right now, Culinarian Cookware faces two diverse views about the 2007 price promotion. Those views depend on different calculation methods from consultants and another proposed by Brown. Those different methods caused different results when evaluating the profitability of the 2004 price promotion. By identifying and comparing the methods and results of these two calculations, the 2004 price promotion was not as good as they imagined. This article talks about another calculation method used to explain why the 2004 price promotion is not a good choice. The price promotion can bring development, but the short term gains cannot obscure the fact of the long-term losses. The 2004 price promotion failed. By learning from 2004 mistakes, Culinarian could develop more concrete steps, which can suit their own conditions, and then they can make their own way.
Introduction
From 2002 to
Cited: Quelch, J. A. & Beckham, H. (2009). Culinarian Cookware: Pondering Price Promotion: Harvard Business Publishing, 1-10. United Business Media. (2010). Mastering Marketing in Social Media. Retrieved from http://promotions.prnewswire.com/rs/prnewswire/images/wp_Mastering_Marketing_in_Social_Media.pdf Appendix Ⅱ